Sheridan, 50, had one year remaining on his contract but expressed a desire to relocate back to the north of England.

"I have thought long and hard about the decision and I hope people understand the reasons behind it," said Sheridan.

"It has been a pleasure and a privilege to have been Plymouth Argyle's manager for the last two and half years, and I would like to thank the board and the fans for supporting me wholeheartedly during my time at Home Park.

"I believe that I leave the club in a far stronger position to reclaim its place at a higher level of the Football League than it was when I first arrived and I wish it nothing but continued success for the future."

The former Chesterfield and Oldham manager had been in charge at the Devon club since January 2013.

Plymouth were just one place and one point outside the League Two relegation zone when Sheridan took over at the Home Park side.

John Sheridan's Plymouth Argyle career

6 January 2013: Appointed as Plymouth boss with the club in the League Two relegation places after the sacking of Carl Fletcher

27 April 2013: Keeps Argyle in the Football League as they finish two places and one point above the relegation zone

20 November 2013: Leads Argyle to their first FA Cup win for almost six years as they beat Lincoln City 5-0

March-May 2014: Argyle win just one of their final nine games as they drop from the play-off places to finish 10th in League Two

August 2014: Brings in eight new permanent signings over the summer as the club aim for promotion

2 May 2015: Argyle beat promoted Shrewsbury 2-0 to finish seventh in League Two and enter the play-offs for the first time since 1996

15 May 2015: Sheridan says he will consider his Plymouth future after the club are beaten 5-3 on aggregate by Wycombe Wanderers in the League Two play-off semi-finals

"The search for a new manager to take Argyle into next season has already begun," added owner James Brent.

"While we would have liked John to continue to plot Argyle's course back up the Football League, we understand his reasons for wanting to leave and have agreed a mutual termination of his contract."

The club are yet to confirm whether any of Sheridan's coaching staff, which includes former Pilgrims player Paul Wotton, will remain at Home Park.

"John has made a significant contribution to the Pilgrims' cause, for which we will always be very grateful.

"Under his management, Argyle were brought back from the brink of relegation out of the Football League and were subsequently transformed into League Two promotion contenders."